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Steel Strips Wheels to raise $16 million via stake sale this fiscal

08 Jun 2011 Evaluate

Steel Strips Wheels (SSWL) is planning to raise about $16 million via stake sale to two foreign investors this fiscal. The company is also expected to seal one of its deals within the span of six months. The company plans to utilize the funds for the expansion of the capacity at its Jamshedpur and Chennai plants.

The company earlier in January was reported to be in talks with a strategic investor to sell 6.5-7.5% of its stake and was expected to close the deal by the month-end. However, the unfavorable market condition given the volatility witnessed in bourses from the beginning of the year hindered the deal.

Further, in all, the company, whose product range comprises wheels for passenger cars, multi-utility vehicles, tractors, trucks and two-wheelers, expects to raise around Rs 123 crore through a mix of share sale and loans in FY12.

The company has reported a net profit of Rs 7.72 crore for the quarter ended December 31, 2010 as compared to Rs 2.37 crore for the quarter ended December 31, 2009, up by 225.74%. The total income has increased by 43.15% to Rs 165.64 crore for the quarter ended from 115.71 crore for the quarter ended December 31, 2009.

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